1. PAYBACK PERIOD Project L costs $45,000, its expected cash inflows are $14,000 per year for 6 years, and its WACC is 9%. What is the project's payback? Round your answer to two decimal places. years
2. The expected return on the market portfolio is 19%. The risk-free rate is 12 %. The expected return on SDA Corp. common stock is 18 %. The beta of SDA Corp. common stock is 1.40. Within the context of the capital asset pricing model,
3. A ten year $1,000 par value bond pays 9% coupons semiannually. The bond is priced at $1,167.25 to yield an annual nominal rate of 7% convertible semiannually. Calculate the redemption value of the bond.